ARM (NASDAQ:ARM) Shares Down 1.9% – What’s Next?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price traded down 1.9% on Monday . The stock traded as low as $233.29 and last traded at $238.78. 3,269,135 shares traded hands during trading, a decline of 60% from the average daily volume of 8,174,105 shares. The stock had previously closed at $243.32.

Analyst Ratings Changes

A number of research analysts have issued reports on ARM shares. Benchmark assumed coverage on shares of ARM in a research note on Thursday, July 16th. They set a “hold” rating on the stock. UBS Group dropped their price objective on shares of ARM from $360.00 to $320.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. Jefferies Financial Group reissued a “buy” rating and set a $320.00 price objective on shares of ARM in a report on Monday, July 20th. Barclays upped their target price on ARM from $250.00 to $360.00 and gave the company an “overweight” rating in a research report on Monday, June 1st. Finally, HSBC lowered ARM from a “buy” rating to a “hold” rating and raised their target price for the stock from $255.00 to $315.00 in a research note on Tuesday, July 14th. Eighteen research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, ARM presently has an average rating of “Moderate Buy” and a consensus price target of $305.12.

ARM Stock Up 1.2%

The stock has a market cap of $258.01 billion, a PE ratio of 249.03, a P/E/G ratio of 7.08 and a beta of 3.90. The business has a 50 day moving average price of $296.43 and a 200 day moving average price of $232.09.

ARM (NASDAQ:ARM) last posted its earnings results on Thursday, July 30th. The company reported $0.45 EPS for the quarter, topping the consensus estimate of $0.40 by $0.05. ARM had a return on equity of 12.24% and a net margin of 20.25%.The firm had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same period last year, the company earned $0.35 earnings per share. ARM’s revenue for the quarter was up 22.4% compared to the same quarter last year. On average, research analysts predict that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CAO Laura Kathleen Bartels sold 11,306 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $392.70, for a total transaction of $4,439,866.20. Following the sale, the chief accounting officer owned 12,135 shares of the company’s stock, valued at $4,765,414.50. This trade represents a 48.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider William Abbey sold 6,566 shares of ARM stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $402.72, for a total transaction of $2,644,259.52. Following the transaction, the insider directly owned 20,563 shares of the company’s stock, valued at approximately $8,281,131.36. This trade represents a 24.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 22,072 shares of company stock worth $8,528,128 in the last ninety days.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ARM. Northwestern Mutual Wealth Management Co. boosted its stake in shares of ARM by 2,623.5% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company’s stock worth $182,743,000 after acquiring an additional 1,610,403 shares in the last quarter. Employees Provident Fund Board purchased a new position in shares of ARM in the 4th quarter valued at about $120,241,000. Arrowstreet Capital Limited Partnership increased its stake in shares of ARM by 1,203.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock valued at $142,983,000 after purchasing an additional 872,644 shares in the last quarter. Janus Henderson Group PLC purchased a new position in shares of ARM in the 1st quarter valued at about $116,112,000. Finally, SG Americas Securities LLC raised its holdings in ARM by 265.6% in the 1st quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock worth $146,903,000 after purchasing an additional 705,459 shares during the period. Hedge funds and other institutional investors own 7.53% of the company’s stock.

ARM Company Profile

Arm Holdings (NASDAQ: ARM) is a global semiconductor IP company best known for designing energy-efficient processor architectures and related technologies that underpin a wide range of computing devices. Founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology and headquartered in Cambridge, England, Arm develops the ARM instruction set architectures and core processor designs that chipmakers license and integrate into custom system-on-chip (SoC) products. The company operates a licensing and royalty business model rather than manufacturing chips itself.

Arm’s product portfolio includes CPU core families (such as Cortex and Neoverse lines), GPU and multimedia IP (Mali), neural processing units (Ethos) and a suite of system and physical IP blocks.